CompUSA 2013 Annual Report Download - page 9

Industrial Products
The market for the sale of industrial products in North America is highly fragmented and is characterized by multiple distribution channels such
as small dealerships, direct mail distribution, internet-
based resellers, large warehouse stores and retail outlets. We also face competition from
manufacturers’
own sales representatives, who sell industrial equipment directly to customers, and from regional or local distributors. Many high
volume purchasers, however, utilize catalog distributors as their first source of product. In the industrial products market, customer purchasing
decisions are primarily based on price, product selection, product availability, level of service and convenience. We believe that direct marketing
via sales representatives, catalog and the Internet are effective and convenient distribution methods to reach mid-
sized facilities that place many
small orders and require a wide selection of products. In addition, because the industrial products market is highly fragmented and generally less
brand oriented, it is well suited to private label products.
Employees
As of December 31, 2013, we employed a total of approximately 5,100 employees, of whom 3,500 were in North America and 1,600 were in
Europe and Asia.
Seasonality
As the Company has a significant portion of its sales in the North America consumer business market, the fourth quarter has historically
represented the greatest portion of annual sales. Net sales have historically been modestly weaker during the second and third quarters as a result
of lower business activity during those months. See Item 7, “Management’
s Discussions and Analysis of Financial Condition and Results of
Operations; Seasonality”.
Environmental Matters
Under various national, state and local environmental laws and regulations in North America and Western Europe, a current or previous owner
or operator (including the lessee) of real property may become liable for the costs of removal or remediation of hazardous substances at such real
property. Such laws and regulations often impose liability without regard to fault. We lease most of our facilities. In connection with such leases,
we could be held liable for the costs of removal or remedial actions with respect to hazardous substances. Although we have not been notified of,
and are not otherwise aware of, any material real property environmental liability, claim or non-
compliance, there can be no assurance that we
will not be required to incur remediation or other costs in connection with real property environmental matters in the future.
Financial Information About Foreign and Domestic Operations
We currently sell our products in North America (the United States, Puerto Rico and Canada) and Europe. Approximately 38.8%, 37.8%, and
36.0% of our net sales during 2013, 2012 and 2011, respectively were made by subsidiaries located outside of the United States. For information
pertaining to our international operations, see Note 12, “Segment and Related Information,”
to the Consolidated Financial Statements included in
Item 15 of this Form 10-
K. The following sets forth selected information with respect to our operations, excluding discontinued operations, in
those two geographic markets (in millions):
See Item 7, “Management’s Discussions and Analysis of Financial Condition and Results of Operations”,
for further information with respect to
our operations.
7
Table of Contents
North
America Europe Total
2013
Net sales
$
2,256.9
$
1,095.4
$
3,352.3
Operating loss
$
(14.9
)
$
(5.7
)
$
(20.6
)
Identifiable assets
$
610.4
$
332.0
$
942.4
2012
Net sales
$
2,417.6
$
1,126.7
$
3,544.3
Operating income (loss)
$
(63.6
)
$
23.7
$
(39.9
)
Identifiable assets
$
642.9
$
319.4
$
962.3
2011
Net sales
$
2,580.8
$
1,099.8
$
3,680.6
Operating income
$
45.0
$
35.8
$
80.8
Identifiable assets
$
643.9
$
245.8
$
889.7